Ventas (NYSE: VTR) is one of 26 publicly-traded companies in the “Healthcare REITs” industry, but how does it weigh in compared to its competitors? We will compare Ventas to similar businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, profitability, earnings and dividends.

Earnings and Valuation

This table compares Ventas and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ventas $3.52 billion $1.88 billion 32.33
Ventas Competitors $863.81 million $523.61 million 39.30

Ventas has higher revenue and earnings than its competitors. Ventas is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Ventas has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500. Comparatively, Ventas’ competitors have a beta of 0.49, indicating that their average share price is 51% less volatile than the S&P 500.

Profitability

This table compares Ventas and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ventas 20.08% 6.31% 2.81%
Ventas Competitors 37.81% 7.58% 3.73%

Dividends

Ventas pays an annual dividend of $3.10 per share and has a dividend yield of 4.9%. Ventas pays out 157.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 5.2% and pay out 125.2% of their earnings in the form of a dividend. Ventas has increased its dividend for 6 consecutive years. Ventas lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of recent ratings and target prices for Ventas and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ventas 4 7 1 0 1.75
Ventas Competitors 207 854 696 12 2.29

Ventas presently has a consensus target price of $63.44, indicating a potential downside of 0.37%. As a group, “Healthcare REITs” companies have a potential upside of 3.28%. Given Ventas’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Ventas has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

89.2% of Ventas shares are held by institutional investors. Comparatively, 84.2% of shares of all “Healthcare REITs” companies are held by institutional investors. 1.3% of Ventas shares are held by insiders. Comparatively, 1.9% of shares of all “Healthcare REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Ventas competitors beat Ventas on 12 of the 15 factors compared.

Ventas Company Profile

Ventas, Inc. is a real estate investment trust (REIT) with its properties located throughout the United States, Canada and the United Kingdom. The Company operates through three segments: triple-net leased properties, senior living operations and office operations. Under its triple-net leased properties segment, the Company invests in and owns seniors housing and healthcare properties throughout the United States and the United Kingdom and leases those properties to healthcare operating companies under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses. In its senior living operations segment, it invests in seniors housing communities throughout the United States and Canada and engages independent operators to manage those communities. In its office operations segment, the Company primarily acquires, owns, develops, leases and manages medical office buildings (MOBs) and life science and innovation centers throughout the United States.

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